Global index provider MSCI has decided to hold off on plans to exclude companies holding large amounts of cryptocurrency from its indexes. Consequently, Strategy (Ticker: MSTR), which effectively functions as a 'Bitcoin holding company' and faced potential removal, will remain in the index, causing its stock price to surge.
Late Tuesday, MSCI officially announced in a statement that it "has determined at this time not to implement the proposal to exclude digital-asset treasury companies" in its upcoming February index review. This decision marks MSCI's first official stance on the recent controversy regarding the index eligibility of digital asset-holding companies, providing a temporary reprieve for the firms involved.
While Strategy is classified on paper as an enterprise software company, it holds a significant portion of its assets in Bitcoin, raising concerns that it does not align with the nature of traditional stock market indexes. Wall Street analysts had feared that if MSCI changed its rules to exclude Strategy, it would trigger a massive sell-off (overhang) by passive funds tracking those indexes.
However, MSCI's decision to defer the exclusion has put market concerns to rest for now. Major firms like Cantor Fitzgerald expressed relief, noting that the risk of forced selling associated with index exclusion has been resolved. Following the news, Strategy's stock jumped approximately 5% in after-hours trading on Tuesday, while BitMine Immersion Technologies (BMNR), a Bitcoin mining and investment company, also saw a rise of about 2%.
Yet, it is too early for Strategy to relax completely. MSCI added that it "intends to open a broader consultation on the treatment of non-operating companies generally"—firms that focus more on investment activities than their primary business operations.
MSCI emphasized that the fundamental objective of its indexes is to measure the performance of operating companies. They noted that determining how to classify entities whose primary activities are investment-oriented requires "further research and consultation with market participants." This suggests that if Strategy cannot prove that its Bitcoin holdings are integral to its business operations, its long-term residency in the index could still be uncertain.
Meanwhile, despite meeting the eligibility requirements for the S&P 500 index, Strategy has yet to be included. This is likely due to the S&P Index Committee's discretion in selecting members and lingering questions regarding the suitability of digital asset treasury companies.
Strategy's stock has plummeted about two-thirds since its peak in July 2025, driven by falling Bitcoin prices and fears of index exclusion. Investors are now watching closely to see if MSCI's decision will halt the excessive decline and serve as a catalyst for a rebound.